Most companies take "profit maximization" as the ultimate goal of corporate finance. The goal of corporate profit maximization is to continuously increase corporate profits and maximize profits through the management of corporate financial activities. However, because the goal of "profit maximization" does not consider the relationship between the time value, risk value, input and output of funds, it often leads to short-term behavior of corporate financial decisions, so it is gradually negated by practice. The maximization of enterprise value in our country can only be a theoretical formula and an ideal development goal at present, and it does not play a significant role in guiding financial management of enterprises. The main problems in the realization of financial management goals are:
1 ---), basically do not consider risk factors
Under the conditions of the planned economy, enterprise management mainly implements the relevant national plans, completes the various indicators specified in the plan, and completes the plan. The financial activities of the enterprise have been basically determined, and there are few talks about the business risks involved in the business process of the enterprise. problem. In this way, the risks in the eyes of corporate executives and financial managers are simply neglect or assumptions.
2 ---), with the planned economy as the core
In terms of fund management, it is mainly the method of approving the quota of funds and the method of preparing the fund plan; in terms of cost management, it is mainly the method of measuring the cost reduction index and the method of preparing the cost plan; in terms of profit management, it is mainly the method of calculating the profit index and Method of compiling profit plan. These methods are used to analyze and reflect the completion of the planned indicators, but they cannot directly reflect the information of the company's operating decisions.
3--), the economic management system is not complete
In the planned economy, due to the lack of research on business forecasting, there is basically no involvement in business decision-making, so the true expression of corporate profits is lost. For example, there are financial budgeting methods, financial planning methods, financial analysis methods, and financial control methods, but they lack financial decision-making methods. Today, the goal of "maximizing shareholder wealth" has been overcome. Although the shortcomings of the goal of "maximizing corporate profits" have been overcome and the owners' requirements for capital appreciation have been reflected, their advantages and disadvantages are also obvious.
Because of the influence of these factors, some people have proposed to maximize cash flow, maximize cash dividends, maximize net present value, etc. as financial management goals, but these goals only make financial management available in some aspects and cannot represent The overall goal of financial management.